15 free questions from the Cinna RE California real estate exam bank (150 in the app). Tap an answer to check it. The rationale opens right away.
Failure of a California licensee to deliver the required agency disclosure form does NOT automatically void the transaction, but it may expose the licensee to:
Answer: B. DRE discipline and potential civil liability to the harmed party
Noncompliance with agency disclosure requirements can subject the licensee to disciplinary action by the DRE and possible civil liability to a party harmed by the failure. It is not an automatic criminal felony.
Even when acting solely as a buyer's agent in California, what duty does that agent still owe to the seller (a non-client)?
Answer: B. A duty of honest and fair dealing and good faith, including disclosure of known material facts
California law imposes on every agent a duty of honest and fair dealing and good faith toward all parties, even non-clients, including disclosure of known material facts. Full fiduciary loyalty is owed only to the agent's own principal.
Unlike some eastern states, California residential purchase contracts typically do NOT include a mandatory attorney-review period. Instead, the standard California Residential Purchase Agreement protects buyers primarily through:
Answer: C. Contingencies (inspection, loan, appraisal) with default time periods the buyer may use to cancel
California does not use a statutory attorney-review period. The standard C.A.R. Residential Purchase Agreement relies on contingencies, such as inspection, loan, and appraisal contingencies, with default time periods (commonly 17 days) during which the buyer may investigate and cancel without penalty.
Under Easton v. Strassburger and Civil Code 2079, the listing/selling agent in a one-to-four residential sale owes the buyer a duty to:
Answer: B. Conduct a reasonably competent and diligent visual inspection of accessible areas and disclose material facts found
Easton v. Strassburger, codified in Civil Code 2079, requires the agent to conduct a reasonably competent and diligent visual inspection of reasonably accessible areas of one-to-four residential property and disclose to the buyer all material facts that such an inspection would reveal.
A salesperson runs an online ad for a listing that gives only a phone number and price but omits any indication that a licensee is involved. This is an example of:
Answer: B. A blind advertisement, which is prohibited
A 'blind ad' is one placed by a licensee that fails to disclose that the advertiser is a real estate licensee or agent. California prohibits blind advertising; ads must reveal the licensee/broker so the public is not misled into thinking they are dealing directly with a private party.
All first-point-of-contact solicitation materials and advertising by a licensee in California must include which of the following?
Answer: B. The licensee's DRE license identification number (and for the responsible broker, the broker's license number or NMLS where applicable)
California law requires licensees to disclose their DRE license identification number on all first-point-of-contact solicitation materials (business cards, advertising flyers, etc.). This lets consumers verify licensure. Personal data like SSN is never required in advertising.
A broker receives a buyer's earnest-money check made payable to the title company, and the buyer instructs the broker to hold it until acceptance. Once the offer is accepted, by when must the broker deposit or deliver the funds under DRE rules?
Answer: A. Immediately, in no event later than the next business day after the broker receives them
Under DRE trust-fund rules, funds received on behalf of others must be placed into the hands of the owner, into escrow, into a neutral depository, or into the broker's trust account no later than three business days after receipt. However, when the buyer instructs the broker to hold an uncashed check until acceptance, the broker may do so, and once the contingency (acceptance) is satisfied the check must be handled immediately, by the next business day at the latest, unless the buyer gives different written instructions.
A person negotiates the sale of real property for another and expects compensation. Under California law, this activity generally requires the person to:
Answer: B. Hold an active DRE real estate license
Anyone who, for compensation or expectation of compensation, performs real estate acts such as selling, buying, leasing, or negotiating on behalf of another must hold an active DRE real estate license.
California's fair-housing protections under the Unruh Civil Rights Act and the Fair Employment and Housing Act (FEHA) are notable because they:
Answer: D. Extend protection to additional classes such as source of income, sexual orientation, gender identity, marital status, and ancestry beyond the federal classes
California's Unruh Act and FEHA protect classes beyond the federal Fair Housing Act, including sexual orientation, gender identity/expression, marital status, source of income, ancestry, medical condition, age, and more, making California fair-housing law broader than federal law.
The three required statutory courses for a California salesperson applicant include Real Estate Principles, Real Estate Practice, and which of the following?
Answer: B. One additional DRE-approved real estate elective course
California salesperson applicants must complete Real Estate Principles, Real Estate Practice, and one additional approved real estate elective course chosen from a DRE-approved list, totaling 135 hours.
A broker discovers at month-end that the trust account balance is $300 less than the total owed to all beneficiaries (a trust fund shortage). The broker should:
Answer: B. Immediately deposit broker funds to cover the shortage and correct/document the error, since the broker must always maintain trust funds equal to the aggregate beneficiary liability
A broker must at all times maintain a trust account balance at least equal to the total of all funds held for beneficiaries. A shortage is a serious violation; the broker must promptly restore the funds from the broker's own money and document the correction. Borrowing from another beneficiary's funds is itself a violation.
A licensee is convicted of a felony substantially related to the qualifications, functions, or duties of a real estate licensee. The Commissioner may:
Answer: B. Suspend or revoke the real estate license
A conviction of a crime substantially related to the qualifications, functions, or duties of a licensee is independent grounds for the Commissioner to suspend or revoke the license, in addition to any criminal penalty imposed by the court.
How much of a broker's own money may a broker keep in the trust fund account to cover bank service charges without it being considered commingling?
Answer: B. Up to $200
DRE rules permit a broker to keep up to $200 of the broker's own funds in the trust account to cover bank service charges and similar fees without being deemed commingling. Amounts above that, used for the broker's benefit, would constitute commingling.
A California real estate salesperson license issued by the DRE is valid for what term before it must be renewed?
Answer: A. 4 years
California real estate salesperson and broker licenses are issued for a four-year term. The license must be renewed before expiration to continue practicing, and renewal requires completion of the mandated continuing education.
A California salesperson lets their license expire without renewing. What is generally true about practicing during the lapse?
Answer: C. They may not engage in licensed real estate activity until the license is renewed or reinstated
An expired license is not valid; the licensee may not lawfully perform licensed acts until the license is renewed. California allows a late renewal period (up to two years after expiration with a late fee), but no licensed activity may occur while the license is expired.
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